Solar loan offers homeowners relief from power bills

loans.com.au has launched an Australian-first Solar Home Loan that will help homeowners beat soaring electricity bills by installing a solar energy system at effectively no cost.

The home loan offers a 0.6% interest rate discount for five years to borrowers who install a qualifying solar power system which is large enough to make a real impact on the power they take from the grid.

On an average home loan of $450,000, this 0.6% discount amounts to $13,500 in savings over five years, which is more than the upfront cost of a 10kw solar system – the largest commonly available.

Managing Director Marie Mortimer said the new Solar Home Loan was perfectly timed to help homeowners who were feeling the pinch from higher interest rates, inflation, and an unprecedented increase in power bills.

“We know people are mindful of their budgets right now due to the rising cost of living and especially soaring power costs, so we’ve launched a loan which really helps families during what is becoming a very difficult period economically,” Ms Mortimer said.

“Our Solar Home Loan will help people cut their mortgage repayments and their energy bills, while also fighting Climate Change by moving them to clean, renewable solar power.”

The Solar Home Loan was developed with the support of the Federal Government’s Clean Energy Finance Corporate (CEFC), which has also supported loans.com.au’s successful Green Home Loan and Green Car Loan, which offer an interest rate discount for purchasing low emissions homes and cars.

It is available both to new customers and existing loans.com.au customers who install a solar energy system.

Savings from installing a solar power system vary widely depending on the size of the system, the price of power, and the feed in tariff available in the homeowner’s location, but it is widely accepted that a large solar power system can cut bills by 50%.